The stakes are rising, and Krugman calls it a “depression” with an authoritarian slide occurring “in the heart of Europe.” Meanwhile, the EU and UK square off in something far more serious than soccer, leaving Cameron “alone on the island.”
Nobody agrees about what the consequences are now going to be. Some think this is a real turning point: The rest of Europe will forge ahead with a closer fiscal relationship and will simply begin making treaties without Britain—treaties that the British and their banks will simply have to follow if they want to do business with their nearest neighbors. Others note, accurately, that the new treaty arrangements (which still may not prevent economic crisis, by the way) will be under negotiation for a good while longer, and the British may find a way to slide themselves back into the loop if they want to.
But even if everyone keeps muddling along, as they so often do, this sudden moment of isolation won’t be quickly forgotten.